New Product Development in the Highly-Competitive Bread Market

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The main performance objectives for the Hovis Crusty Loaf concept

The main performance objectives include achieving low costs in a fierce price-sensitive market with low margins and dependability. Low production costs, with quality being critical, speed, flexibility, and continuous assessment of the production process are critical to adding new varieties of loaves into the production line.

The product development process

High-level strategic intent

The product development process follows critical phases with high-level strategic intent, using effective communication organization-wise with strategic objectives, intent, and congruence of aims.

Market analysis

Hovis clearly understood market characteristics, language, customer needs, size, shape, segment, and demographics.

Brand portfolio

With focused stages A and B, when reviewing brand portfolio for each market sector.

Further market analysis

Comprehensive information about market style and dynamics by determines attractive for Hovis, feasible, and profitability in line with the aims and strategic objectives.

Formation of the project team

That was achieved by varying the composition of personnel with varying production and skill needs.

Brainstorming

Meetings were called to generate new ideas required for innovation.

Technical Screening

Here, ideas were analyzed for feasibility using technical and external experts.

Technical innovation

Here, practical solutions were integrated into parts with a focus on bespoke innovative processes.

Management and Employee Involvement

Here, regular meetings were addressed.

Planning for the Launch

A collaborative cross-functional effort using skilled expertise saw a successful launch of the Hovis brand.

Summary

The launch of Hovis bread was successful with rising demand inducing parallel processes to address the problem.

What impact, if any, would the introduction of Hovis Crusty have had on the volume and variety characteristics of a British Bakeries operation?

The impact is an increase in volumes and variety characteristics of the Hovis production process in brand extension bread variants. To minimize the impact because of the new varieties, a contingency integration strategy, staged rollout production process for six months addressed changing demand, with minimal changes to specifications with prioritized technology. That is in addition to using standard equipment.

References

Watt, A., & Chambers, S. (2003). Case 12 The Development of the Hovis Crusty White Loaf. In R. Johnston (Ed.), Cases in Operations Management (3rd ed., pp. 62–68). Prentice Hall.

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